The number of apprenticeship starts has continued to fall, with figures for November, months after the introduction of the new apprenticeship levy, showing a 35 per cent drop compared to last year.
Figures published today by the Department of Education show in November 2017 there were 27,000 starts, compared to 41,600 starts at this point in 2016.
The number of starts in November was also down 21 per cent compared to the previous month when there were 34,000 starts. Figures for the last quarter show 114,400 people started an apprenticeship in between August and October 2017, which is 26 per cent lower than the figures reported at the same time last year.
Mark Dawe, chief executive of the Association of Employment and Learning Providers, raised concerns over social mobility, and said there was now “hard evidence rather than anecdote and we don’t want to hear any more excuses”. “These latest figures seem to confirm that the government is currently way short of hitting its manifesto target.
“But the real concern is the impact on social mobility as we see fewer starts for young people and at levels 2 and 3. How many more months’ data do we need before the government starts taking action? AELP is calling for no more employer contributions towards apprenticeships for 16 to 24 year olds at non-levy paying employers, or at employers that have exceeded their levy.”
Significant change
Apprenticeships and Skills Minister Anne Milton said the last year had been a period of significant change for employers.
She added: “We continue to work with them to adjust and respond. Employers have two years to spend their levy funds and it is right that they are planning high quality apprenticeship training that meets their specific needs - and maximises the benefits apprenticeships can bring.
“We introduced our reforms to put quality at the heart of this programme, and to increase employer investment and engagement in training their workforces for the future. Feedback shows employers are planning to do just that.”
‘Disastrous’ impact of levy
The most recent drop comes after Dame Judith Hackitt, chair of the EEF, which represents manufacturing businesses and is the largest sectoral employers’ group in the UK, said this week that the apprenticeship levy, introduced last spring, has had a “disastrous” impact on employers.
“While the levy has laudable aims, its impact on employers has been disastrous. It is complex, companies are unable to access their funds - and many view it as another tax on business. As a result, we have seen new starts collapse, with many companies postponing or halting apprenticeships,” she said.
The number of starts fell in the first three months after the introduction of the levy last April. 48,000 people started an apprenticeship between May and July 2017, compared with 117,000 in the same period last year - a drop of 59.3 per cent.
Growth in apprenticeship numbers was predicted in a CBI poll published last December. Almost half of businesses expected to recruit more apprentices in 2018 according to the survey.
The apprenticeship levy was introduced last April as part of the government’s ambition to see three million apprenticeships by 2020.
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